The visitors were bundled out for a paltry 91 runs before the end of the second session on Saturday.
With this, India has a 1-0 lead in the four-match series.
In the second innings, Australia were once again off to a tricky start in their bid to overcome India's lead of 223 runs.
Ravichandran Ashwin started the Aussies' dominoes falling by dismissing Usman Khawaja for just five runs off nine balls. Australia were 7/1.
Marnus Labuschagne was the next man on the crease and he continued his good form, slamming three great boundaries. However, Ravindra Jadeja's golden arm did the trick again and he trapped the world's number one Test batter lbw for 17 off 28 balls. Australia were 26/2.
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